U.S. Announces Energy Program for Pakistan

After the bilateral Strategic Dialogue meeting in Islamabad today, U.S. Secretary of State Hillary Rodham Clinton announced Phase II of the U.S. Signature Energy Program for Pakistan that will provide an additional $60 million for seven projects to be implemented by USAID, the U.S. Trade & Development Agency (USTDA), the U.S. Geological Survey (USGS), and the U.S. Department of Commerce.

* Gomal Zam Dam: The U.S. will finish a new dam, power house, and transmission components in South Waziristan to provide an additional 17.4 MW of generation capacity to the national grid and electrify 25,000 households serving 200,000 people and have flood control, irrigation and water supply benefits.

* Satpara Dam: The U.S. will finish a new dam and power house in Skardu, Gilgit-Baltistan territory, to provide 17.36 MW of new power and energy to the local grid. The project will also have drinking water benefits.

* Natural Gas Assistance: U.S. agencies will assist in identifying and furthering the development of Pakistan’s natural gas resources in order to provide long-term supply security for its electric power plants. U.S. assistance will help Pakistan improve its legal, regulatory, policy and fiscal regime in order to attract greater investment to develop those resources. The U.S. will also invite Pakistan to join the U.S. Global Shale Gas Initiative.

* Smart Grid and Distribution Modernization Feasibility Study: The U.S. will work with the Karachi Electric Supply Company to conduct a study to determine the viability of an integrated Smart Grid system in Karachi. The project includes the potential for a large Smart Grid pilot project that could help reduce the utility’s electricity losses estimated to reach as high as 40 percent.

* Biomass-Fueled Boiler Feasibility Study for Bulleh Shah Paper Mill: The U.S. will conduct a feasibility study to determine the best option to convert paper and agriculture waste to energy at Packages Limited’s Bulleh Shah paper mill in Kasur, Punjab.

* Gharo Corridor 50 MW Wind Farm Feasibility Study: The U.S. will conduct a feasibility study to determine the technical, economic, and financial viability of a 50 MW wind power pilot project on behalf of Engro Power. The effort includes preparations for an international competitive tender for wind energy engineering, procurement, and construction.

* Beaconhouse Schools Solar PV Power Supply Feasibility Study: The U.S. will conduct a study to assess the technical, economic, and financial feasibility of installing solar photovoltaic (PV) power systems at hundreds of private schools administered by the Beaconhouse Group and owned by Educational Services Limited, the largest private educational services company in Pakistan.

Secretary Clinton announced Phase I of the Signature Energy Program during her October 2009 visit to Pakistan. The Signature Energy Program for Pakistan is designed to help Pakistan meet its energy needs through increasing electricity production and promoting the more efficient usage of electricity. Phase I of the Pakistan Signature Energy Program provided $125 million for six projects. Implementation of these projects is currently underway:

* Generator windings and other spare parts have been ordered to increase the capacity and reliability of Tarbela Dam Hydroelectric Station;

* Equipment is being procured for the rehabilitation of thermal power plants at Jamshoro, Guddu and Muzaffargah to increase the capacity, reliability, and efficiency of the facilities;

* The first 1,000 agricultural tube well pumps have been replaced near Multan, in a program that will reach 11,000 tube wells and substantially increase the efficiency of electricity used in agriculture;

* Work has begun with the electricity distribution companies in Peshawar, Hyderabad, Quetta and Multan to help them improve service, reduce losses and become more efficient.